HOLMEN, Wis. (WKBT) — A federal appeals court has upheld the dismissal of a possession charge against a Holmen man accused of creating sexually explicit images of fictitious children using artificial intelligence.
The 7th Circuit Court of Appeals ruled August 25 that binding Supreme Court precedent protects the private possession of AI-generated, obscene sexual images of fictitious children when no real child is depicted.
Steven Anderegg, 45, was indicted in May 2024 on four federal counts after investigators say he used an AI program to create thousands of realistic images of prepubescent minors. According to the indictment, Anderegg also shared several images with a 15-year-old boy via Instagram.
When Anderegg moved to dismiss the indictment, the district court granted the motion on the possession charge but denied the remainder. The court held that individuals have a First Amendment right to possess obscenity in the privacy of their home under the 1969 Supreme Court case Stanley v. Georgia.
The government appealed, arguing that AI-generated images depicting child sexual abuse should be treated the same as images of actual children. The 7th Circuit disagreed, finding that the government's arguments had already been rejected by the Supreme Court in 2002.
"We now live in an age where GenAI models can render images depicting the abuse of virtual children that are virtually indistinguishable from those depicting the abuse of actual children," Circuit Judge Lee wrote. "Given the relentless advancement in artificial intelligence models, we have some concerns about the lines these cases draw, but we are not free to redraw them ourselves."
The ruling does not affect the other three counts against Anderegg, which remain pending. Those charges relate to the production and distribution of the images, as well as transferring obscene material to a minor.
Anderegg, who now lives in Onalaska, also faces three separate state charges in La Crosse County, including first-degree child sexual assault and two counts of exposing a child to harmful material. According to online court records, the state case has been on hold pending the federal appeal decision. A status hearing is scheduled for November 2.
Anderegg originally faced up to 70 years in prison if convicted of all four federal counts.
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